The US trade deficit exceeds $140 billion in March.

NEW YORK, New York — The U.S. trade deficit ballooned to a record $140.5 billion in March as consumers and businesses tried to get ahead of President Donald Trump’s latest sweeping tariffs. Federal data show a massive stockpiling of pharmaceuticals.

The deficit, which measures the difference between the value of goods and services the United States sells abroad and what it buys, has nearly doubled in the last year. As of March 2024, Commerce Department records show that gap was just under $68.6 billion.

Driven by a surge in imports ahead of President Trump's sweeping tariffs, the US trade deficit hit a record high, pulling GDP into negative territory in Q1 for the first time since 2022 https://t.co/SaGmloE1sf pic.twitter.com/AYeZSIRBUD

— Reuters Business (@ReutersBiz) May 6, 2025

According to federal data released Tuesday, U.S. exports of goods and services totaled about $278.5 billion in March, while imports totaled nearly $419 billion . That represents an increase of $500 million and $17.8 billion, respectively, compared to February's trade.

The US March trade deficit widened to a record as companies front-loaded their orders. pic.twitter.com/3HF8kAT4SL

— Lisa Abramowicz (@lisaabramowicz1) May 6, 2025

Consumer goods led the surge in imports, increasing by $22.5 billion in March. Pharmaceuticals, in particular, rose by $20.9 billion, the U.S. Census Bureau and the Bureau of Economic Analysis reported, highlighting concerns about future tariffs that could impact the sector.

“While we knew that consumer goods accounted for the bulk of the March increase, we can now see that pharmaceuticals were $20 billion higher, almost all of it imported from Ireland,” Oxford Economics analysts said in a note published Tuesday. “Uncertainty remains high, and broader signs of anticipation may be seen in the coming months.”

🆕 The goods and services trade deficit was $140.5 billion in March, up $17.3 billion from $123.2 billion in February, revised. https://t.co/2oHMegxkUo #InternationalTrade #CensusEconData @BEA_News pic.twitter.com/h8JB9ayDdW

— US Census Bureau (@uscensusbureau) May 6, 2025

Imports are flooding into the United States as trade wars escalate abroad. In recent months, Trump has threatened and imposed a series of steep tariffs, and much of March in particular was filled with anticipation and uncertainty ahead of what the president called “Liberation Day” on April 2, when he announced new taxes on imports from nearly all of America’s trading partners. With the exception of China, the highest tariff rates for many countries have since been postponed, but other across-the-board levies remain in place.

The White House insists the new tariffs will help close persistent trade deficits (the United States hasn't sold more to the rest of the world than it has bought since 1975), revitalize U.S. manufacturing, and generate revenue for the government. But economists warn that Trump's proposed tariffs could have significant consequences for businesses, households, and economies around the world.

These new tariffs are already increasing operating costs for businesses that rely on a global supply chain, which, in turn, will increase prices for a variety of goods that consumers purchase every day.

The recent surge in imports reflects efforts by businesses across the country to bring in foreign goods before more tariffs take effect. For example, new orders for manufactured durable goods rose 9.2% to $315.7 billion in March, according to Census Bureau data released last month.

The US trade deficit widened 14% from the previous month to a record $140.5 billion in March with companies rushing to import products as the Trump administration readied sweeping tariffs.

Michael McKee reports https://t.co/YLgQdBQ3Qb pic.twitter.com/KRW8AZHtnD